A shift from S1 to S2 causes equilibrium price to __________ and quantity to __________.
A. rise; rise
B. fall; fall
C. rise; fall
D. fall; rise
C. rise; fall
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An increase in the price level causes an increase in money demand because
a. people need more money to purchase the same level of goods and services. b. changes in the price level have no effect on money demand. c. people have unlimited wants. d. people need less money to purchase the same level of goods and services.
The public enterprise usually pursues a well defined purpose with exact controls over its behavior
Indicate whether the statement is true or false
The optimal allocation of resources is found:
A. where MB = MC. B. at every point along a production possibilities curve. C. where the marginal benefit is at its greatest. D. where the marginal cost is at its lowest.
Cigarettes served as money in some prisoner of war (POW) camps during World War II. Given this, we would expect to observe
A. only government-issued cigarettes being accepted as money. B. people usually resorting to barter rather than using cigarettes as money. C. prices of other goods expressed in terms of cigarettes. D. no one ever smoking a cigarette.